Commonwealth _ The Hambantota International Port (HIP) has reported a remarkable increase in its LPG operations for the second quarter of 2024, with volumes handled doubling compared to the previous year. This substantial growth is complemented by a nearly 128% rise in bunker volumes at the port.
Buoyed by this success, HIP has broadened its range of services to support various oil and gas operations, including LPG vessel gas-ups and direct bunker supplies. This expansion showcases the port’s robust capacity to manage a diverse array of energy-related activities.
“2024 is proving to be a year of significant achievements for our Energy Services,” remarked Li Yongzhuang, General Manager of the Energy Services Department at Hambantota International Port Group (HIPG). He emphasized that the port’s strategic positioning as an energy hub is being reinforced under the joint administration of the China Merchants Group (CMG) and Sri Lanka Ports Authority (SLPA). In the first half of 2024, LPG volumes increased by 91% compared to the same period last year, with total throughput reaching 149,980 metric tons by the end of June, up from 78,724 metric tons in 2023. This surge, fueled by strong demand from both import and transshipment sectors, underscores HIP’s growing significance in the regional energy landscape.
The growth in operational volumes is not confined to LPG alone. Bunker services have also seen a considerable surge, with volumes increasing by 128%. In the first five months of 2024, HIP handled 66,044 metric tons of bunker fuel, compared to 28,923 metric tons during the same period last year. This growth encompasses bunker supplies within the port, at anchorage, and in outside port limit (OPL) areas, highlighting HIP’s strategic and technological advantages, coupled with its growing capability and efficiency in managing complex maritime services.
Johnson Liu, Chief Representative of China Merchants Group (CMG) in Sri Lanka and CEO of HIPG, expressed confidence in the port’s ongoing expansion in the energy sector. “We are actively promoting the energy sector as a growth market for HIP and expect these figures to continue rising. We are confident of meeting our target annual oil and gas volumes by the end of this year,” he said. Liu emphasized the port’s transformation in the Indian Ocean’s oil and gas space through strong partnerships with local and international stakeholders, while adhering to the highest standards of health, safety, and efficiency.
Recently, HIP has successfully completed several LPG gas-ups and direct bunker supply activities, including a direct supply to the McDermott Derrick Barge No. 50 at the HIP Oil Jetty. These activities further cement HIP’s status as an emerging ‘Energy Hub’ in the region. Looking forward, the port is poised to commence Liquid Bulk Ship-to-Ship (STS) Operations, enhancing its capacity to facilitate a wider range of maritime activities.
The strategic enhancement of HIP’s operational capabilities, facilitating a diverse array of maritime activities beyond traditional loading and unloading, is crucial for the maritime industry. This consolidation of essential operations within a single port streamlines processes for global shipping companies, solidifying HIP’s strategic importance. By integrating various energy-related services, HIP not only meets the growing demand but also provides a one-stop solution for maritime logistics.
The port’s impressive growth in LPG and bunker volumes reflects its strategic importance in the global energy supply chain. The success of these operations is indicative of HIP’s robust infrastructure and advanced technology, which enable it to handle complex maritime services efficiently. The port’s ability to attract significant volumes of energy-related cargo and its growing role in the global supply chain underscore its strategic value.
